Heineken N.V. (Frankfurt Code :HEIA), a brewer, and owner of brands like Amstel and Strongbow, was forced to increase its prices to counter a softer demand for beer, a first-quarter update revealed.
Amsterdam-based, Heineken reported net revenue grew by 8.9% to reach €6.4bln in the first quarter of 2023 compared to €5.7bln in the same period a year earlier.
However, overall total consolidated volumes dropped by 3.1%.
“We started the year with strong revenue growth driven by pricing and disciplined revenue management,” Dolf van den Brink, chief executive, said.
The Dutch brewer revealed that its price mix had risen by 12.1%, largely down to price increases which it claimed were to offset inflation.
In the UK, sales jumped by a mid-single digit – pushed by both "premiumisation" and pricing.
On-premises trade dropped in Britain, while off-trade continued to drive growth.
Birra Moretti and Beavertown were the biggest influencers of premium beer growth in the UK, Heineken added.
Beer volumes dropped 3% year-on-year driven by a 10.5% decline in Asia Pacific and an 8.3% drop in Africa, the Middle East and Eastern Europe.
The rest of Europe’s beer sales performed slightly better with 15.2mln hectolitres sold, a 2.3% drop compared to last year.
Customers continued to switch to premium drinks indicating a “strong underlying momentum” according to Heineken.
The group's house beer, Heineken, led the charge in terms of volume growth, rising more than 2% globally.
Yet, overall premium beer volumes dropped by 5.7% annually.